Delegates at the New South Wales Labor Party Conference in Sydney have overwhelmingly rejected a State Government proposal to privatise the electricity sector.
Premier Morris Iemma wants to sell electricity retailers and lease power generators, but an amendment to Labor Party policy moved at the conference which rejected privatisation was supported.
The final vote was 702 against electricity privatisation and 107 for it. The vote came after a lengthy debate where speakers, including union officials and Government ministers, outlined their positions on the proposed power sector reforms.
The reception was hostile for all pro-privatisation speakers, but the most raucous response was reserved for Treasurer Michael Costa, who passionately argued the Government's case.
"This policy is sensible, we shouldn't allow a bunch of egos and a bunch of people that are looking at their future careers to de-rail a Premier that won the unwinnable election," he said.
Mr Costa has indicted the Government will push ahead with the plan, in spite of the conference decision.
Mr Iemma earlier told the conference that private sector involvement was necessary because the Government on its own could either fund electricity or services - not both.
It is an argument Unions New South Wales spokesman John Robertson rejected.
"We shouldn't have to make a choice. This Government should fund both," he said.
Former premier Barrie Unsworth urged conference to support the plans.
A spokesman for Mr Iemma says he will weigh up the views of 700 delegates against the future needs of seven million people.
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